month between January and September 2003 to 20,500 units per month between October 2003 and April 2004. Thai Yamaha was the first motorcycle company to introduce an automatic transmission into the market with the launch of the Nouvo model in 2002.<br><br> Thai Yamaha was the pioneer on providing various motorcycle customization that revolutionised the contemporary marketing approach. At present, sales continue to soar following successful awareness-building campaigns in various media as well as the introduction of dedicated 8Nouvo Corner 9 located in key dealerships. Nouvo Corners inform and educate potential buyers about the differences between the new automatic model and traditional manual transmissions.<br><br> Following in the footsteps of Nouvo 9s success, Thai Yamaha launched the automatic Mio model which, like Nouvo, has enjoyed exceptional sales growth and achieved the highest sales in the company 9s history. This milestone firmly cemented the Yamaha brand 9s position as Thailand 9s leader in automatic motorcycles. HISTORY Yamaha motorcycle business began operations in Thailand on March 12, 1964, under the name Siam Yamaha Co, Ltd, in response to growing consumer demand for motorcycles.<br><br> The company 9s creation was spurred by the Thai government 9s policy to actively promote the domestic automotive industry. The company opened its first factory on Sukhumvit Road in Samutprakarn Province in June 1966. In 1981, Yamaha was pioneer to introduce the first sport-moped Belle 80 to the Thai market.<br><br> In 1997, Yamaha launched Rainbow, its first four- stroke motorcycle. That same year, Yamaha engines received ISO 9002 accreditation. Yamaha has enjoyed continuous growth in Thailand, a success the company attributes partially to the support and co-operation of both local authorities in Thailand and from Yamaha Motor Co, Ltd (YMC) in Japan.<br><br> In June 2000, YMC acquired a majority stake in Yamaha 9s Thai operations to reinforce its competence and world- class standards. The company was renamed Thai Yamaha Motor Co, Ltd and is now regarded as one of Thailand 9s leading motorcycle manufacturers and distributors. Thai Yamaha employs about 2,500 staff, has annual sales turnover in excess of Baht 8.8 billion, and an annual production capacity of 400,000 motorcycles.<br><br> In October 2003, the company was awarded ISO9001: 2000 accreditation. THE PRODUCT Thai Yamaha 9s motorcycle manufacturing facility sources 95 percent of its parts domestically, with only five percent sourced from overseas. The following Yamaha brands are assembled and sold in Thailand: " Nouvo 3 Yamaha 9s first automatic transmission motorcycle, launched in June 2002.<br><br> This model is advertised throughout ASEAN countries by the English footballer Michael Owen, and in Thailand by local celebrities S and Nott, and Sek Loso " Mio 3 an automatic transmission motorcycle, targeting for the trendy, rebellious and dynamic youth market. The Mio is promoted for the domestic market by popular Thai rock band Clash " X-1 3 a manual transmission, four-stroke motorcycle, targeting the Thai youth market wishing to be seen as cool, exciting and original. Thai pop group Silly Fools was chosen to promote this model due to their off- beat style " Spark R/Z 3 the trendy four-stroke motorcycle with performance racing image that targets the stylish young adult market " Fresh II 3 the attractive four-stroke moped- style motorcycle targeting the young women market.<br><br> Yamaha edit 2 11/24/04, 11:37 AM 142 143 RECENT DEVELOPMENTS Motorcycles were traditionally sold through exclusive dealerships or dealers selling multiple brands, making Yamaha models indistinguishable from other brands. While most of Thailand 9s motorcycle manufacturers compete primarily on unit price, Yamaha focuses on the full ownership experience, from buying the vehicle to after-sales support, maintenance and an overall branding including matching apparel and accessories. A modern approach to retailing was therefore needed to allow the Yamaha brand to stand out from the competition.<br><br> For retail shop outlook, Thai Yamaha is implementing an extensive redesign of all leading dealerships using the 8Yamaha Square 9 brand. The entire exterior and interior of the dealerships are being rebuilt in a futuristic and fashionable format, emphasising the quality of presentation 3 not only for the motorcycles but for customer lifestyle activities, spare parts, apparel and accessories. Yamaha has moved away from lining up rows of motorcycles, preferring to carefully position each model in more spacious surroundings, in a modern retail-style environment.<br><br> Thai Yamaha has also undergone important cultural changes within the organisation, positioning itself in a new direction with the core brand value of becoming a market trendsetter, distinguishing itself from close rivals who promote their products primarily on price. PROMOTION Thai Yamaha targets customers between the ages of 17 and 24, a group which accounts for 60 percent of the total motorcycle purchases in Thailand. Young generation are pioneers who formulate new fashions and trends, and if the Yamaha brand is successfully positioned within this market, the company believes this perception will permeate Thailand 9s motorcycle-buying public.<br><br> Yamaha 9s promotional activities form four tiers: " Worldwide corporate communications aimed at conveying Yamaha 9s wide range of activities and its technological know-how " ASEAN brand-building, key elements of which include the cSwitch d campaign and the consolidation of motorcycle models which resulted in a pan-ASEAN product range " Individual advertising campaigns in each country for the launch of new products " Sales promotion activities unique to each country To kick-start this strategic initiative, Yamaha launched the cSwitch d campaign in the third quarter of 2003. The campaign, using the slogan cMakes Your Life Different d, employed a pan- ASEAN multi-media approach to re-shape the company 9s image among fashion-conscious consumers. Campaign activities included: " cSwitch d themed television commercials featuring pop band F4 to help building brand image " cSwitch d kick-off meetings with nationwide dealers and national press " cSwitch d posters, banners and newspaper advertisements " cSwitch d caravan, a mobile public relations concept to bring the campaign to all parts of the country " cSwitch d bus wraps, with large advertisements on the sides of public transport buses " Themed events such as cTalk of the Town d in central Bangkok, and tie-in promotions with popular discotheques " Thai Yamaha adventure programs, in which Yamaha owners participate in activities such as countryside tours " Yamaha custom parts and accessories to make it easier for fashion-conscious owners to customise their motorcycles with a range of cYamaha Genuine d items " Yamaha Vision magazine, updated with information and advice for dealers to understand the purpose of the cSwitch d campaign " Yamaha website, newly designed along the themes of innovation, sport and style, accompanied by a mobile phone SMS campaign " cSwitch d internal company launching activities which communicate new company culture to all employees to be more customer oriented Thai Yamaha secured celebrity endorsements for its various motorcycle models.<br><br> The Mio automatic motorcycle is advertised by the Thai pop group Clash; the X-1 motorcycle uses Silly Fools, another popular Thai band; and the original automatic motorcycle Nouvo is promoted by popular English footballer Michael Owen and two young Thai television stars S and Nott, and top rock singer Sek Loso. Other marketing initiatives include the launch of the Nouvo VIP card, which gives Nouvo owners in Thailand access to 24-hour roadside assistance and free maintenance, and it also allows cardholders to attend promotional events such as movie premieres. Thai Yamaha celebrates its 40th Anniversary in 2004 Thai Yamaha 9s manufacturing facilities are one of the group 9s largest in the world outside Japan Thai Yamaha revolutionised the Thai motorcycle market with a series of automatic transmission models Thai Yamaha is the first motorcycle brand to use world-class celebrity endorsers, with stars such as footballer Michael Owen and pop group F4 Thai Yamaha 9s racing team won every major four-stroke racing competition in Thailand in 2003 In 2004, Thai Yamaha received the highest cA Class d designation in Yamaha Motor Company 9s worldwide evaluation of 72 affiliated operations Thai Yamaha exports motorcycle parts, engines and fully-assembled units to countries with stringent quality requirements, including Asia, the EU, the US and Japan THINGS YOU DIDN 9T KNOW ABOUT THAI YAMAHA BRAND VALUES Thai Yamaha takes pride in being a market innovator and creator of a premium brand known for product quality, after sales support and service, and leading edge branding, marketing and promotional activities.<br><br> To realise its ambitious plans for creating the highest brand equity in the industry, Thai Yamaha strives to differentiate itself with a clear marketing strategy and the creation of a premium brand which appeals to a young generation, rather than pursuing a strategy of price competition. The Yamaha group 9s cKando d philosophy stems from the Japanese word which means d ctouching your heart d, a word meant to convey the simultaneous feelings of deep satisfaction and intense excitement that are experienced when something of exceptional value is encountered. To make this philosophy a reality, Thai Yamaha has a policy of continual improvement, and offers products and services that empower customers to pursue their desirable lifestyles, reinforcing the Yamaha brand image through product innovation and upbeat promotional and branding activities.<br><br> Yamaha edit 2 11/24/04, 11:37 AM 143

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